Once a CID investigation is completed and the special agent in charge of the case  recommends prosecution, the IRS conducts two more levels of review before a final decision is made by the IRS to forward the case to the United States Department of Justice Tax Division in Washington, DC, for prosecution. At the U.S. Department of Justice Tax Division, federal prosecutors specializing in criminal tax violations once again review the case and make the final decision to prosecute or decline prosecution of the case. If the Department of Justice Tax Division in Washington approves prosecution, the case is sent to the local US Attorney's office with the direction that the individual or individuals named be indicted and prosecuted for the offenses alleged.

In tax crime cases, the multi-tiered review and approval process can work to your advantage. There are a number of different opportunities available to the taxpayer and his or her counsel to derail a federal criminal case before it ever reaches a grand jury for indictment. At each of the IRS approval levels and at the Department of Justice Tax Division, your lawyer will have the opportunity to meet with government attorneys to attempt to convince them to decline prosecution of your case. If the government has a strong case against you, it is unlikely that he or she will be successful in avoiding prosecution. However, many times experienced counsel can convince the IRS or the Department of Justice Tax Division that the taxpayer made serious mistakes but did not intentionally engage in criminal conduct. In a criminal tax case, your attorney will have a number of opportunities to convince the government to decline prosecution prior to referral to the grand jury.